Telcos begin charging 9% Communication Service Tax today

Mobile phone users will from today, October 1, 2019 begin paying more for communication services following the implementation of the 9% Communication Services Tax.

The tax, which was hitherto pegged at 6% was increased to 9% when the Finance Minister, Ken Ofori-Atta, announced the decision in Parliament in July 2019 during the presentation of the 2019 mid-year budget review.

Some mobile users have already received text messages from their service providers about the new development which they say will be “applied to every recharge.”

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“Dear customer, with the increase in Communications Service Tax – CST to 9%, effective 1st October 2019, CST of 9% will be applied to every recharge. Thank you,” a text to a Vodafone Ghana user read.

The effect of this development on customers according to Ghana Chamber of Telecommunications is that “for every ¢1 of recharge purchased, a 9% CST fee will be charged leaving ¢0.93 for the purchase of products and services.”

According to Ken Ofori-Atta, the increase in the tax was to help develop the foundation for a viable technology ecosystem in the county.

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This will comprise putting in systems to identify and combat cyber crime, protect users of information technology and combat money laundering and other financial crimes.

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